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Best thing for mudding is an old beater truck with some power that runs. I'm not into cleaning every little part everytime I play in some mud. Plus I like to keep my DD up and running. An old beater you can let it rust some (just adds character) and just replace bearings and races when needed. Plus if you break bad, well then you still have a DD and time to pay for it. Just my 2 cents. And yes I've seen ASE Certified, Master, profesional ect, whatever you want to call them tell a friend he had no idea why his car ran really bad. 2 plug wires were switched. I'm 22 and a shade tree mechanic. EASY!
After mudding my beater F250 I park it on the side of the house till next weekend and forget about it. Besides, it kinda looks good with all that mud on it. I change the oil once a month (about every 200 miles) just to be sure. I check my dif fluid, trans, and transfer case fluid once a month also. Mudding in a beater is the only way to go. You dont have to worry about scratches from trees, you make your own trails, if it breaks o well. Just drive it like you stole it and have a good time.
I didn't have time to wash the mud from the weekend off of mine yet. I'm going to call my wife and have her put the sprinkler under it for the afternoon to loosen up the baked on stuff. I'll be pressure washing it tonight.
I will aslo grease everything that gets grease, remove the rear drums and pressure wash that area, check all u-joints, check dif./t-case fluids, and pressure wash engine bay.
On my mudder I remove 12 bolts that hold the rollcage and body on, unbolt the rear fenders, remove the front clip and powerwash the frame and body from both the top and bottom. The baby oil idea might be good, but that's a hella amount of baby oil! About the waterproofing thing, just get as much of it as you can from Autozone and their lifetime warranty stuff. My started, waterpump, brainbox, altenator and voltage regulator are all from AZ and may be 'lifetime replacement/warranty' but they're free as long as I keep a 351W in my Bronco.
There is never a way to make an axle water proof, but you can extend the vent hoses to the highest point in the body you can find. Water finds a way into anything it wants to get into which is pretty much everything. You will just have to maintain what you have with regular maintenance, change the oil and replace seals whenever they need it.
Most axles are pretty water REISITANT already. The vent hose is the only real opening water can get into. I suppose if you sit in a water hole too long, it might start to seep in through the seals, but it really shouldn't.
On a dana44, however, the outer "dust slinger" seals are not very tight and are only designed to keep dust out. Water WILL fill the axle tubes but usually drains out just as easy. The sand/mud may stay and build up so cleaning out the tubes isn't a bad idea.
Before a mudbog you can pack the engine compartement with pink or yellow insulation. This keeps the mud from hitting the electrical and getting in the fan. It can be removed when you are finished. It's been said already but running breather lines into cab or higher on the truck is fairly crutial.